According to economist Prof. Godfred Bokpin, Ghanaians should temper their expectations for the Ghana cedi to appreciate further.
Although the recent increase in the value of the cedi is encouraging, in his opinion, it is not supported by any reliable economic indicators, raising concerns about its durability.
"It is impossible to predict how long it will persist since it is not supported by solid economic foundations. But at least what we saw was positive. It indicates that the system is adapting to the changes, according to Prof. Bokpin, who gave an interview at a roundtable discussion in Accra that the Citizen's Coalition arranged.
He emphasized that the Staff Level Agreement established by the government and the International Monetary Fund and other budgetary measures may be primarily blamed for the relative stability of the cedi versus the major trade currencies.
"Technicalities and broad feelings are the lifeblood of the cedi. The cedi shares positive sentiments when they are expressed. The Staff Level Agreement's future direction is now somewhat clearer thanks to the 2023 budget. When these factors cooperate, the economic uncertainties are reduced.
Even though the Ghana Cedi has been under pressure this year, there have been some cumulative advances.
However, according to Prof. Godfred Bokpin, this will pass quickly.
In order to prevent the financial sector area from getting worse, he encourages the government to take greater action, particularly with its debt exchange scheme.
There is still a lot of work to be done, notwithstanding the cedi's positive reaction. The program is different from the Staff Level Agreement with the IMF. Because of how much debt we have, there is a lot of effort. The debt exchange is not in good shape right now and might gradually damage the participating financial institutions' balance sheets.
In our efforts to reduce our public debt, if we are not vigilant, we risk sparking a catastrophe that will ultimately cost us. Let's carry out the reorganization in a manner that safeguards financial stability, he added.